Chapter 7 is about selling the debtor’s assets rather than repayment. Earlier debtors could determine whether they wanted Chapter 7 or 13. However now, if their income is high, they may not have a choice and should file for Chapter 13. To file Chapter 7, the filer should prove that his disposable income is less than a certain low sum of money. Consult with an experienced Athens, Georgia Chapter 7 attorney to know if you qualify for Chapter 7. In Chapter 7, assets are liquidated and the proceeds are used to repay the filer's creditors. Chapter 13 is about repayment. All income is used for paying off creditors. If available income is greater than that of the median in Georgia, the filer's permitted expenses will be decided by the IRS. The amount must come out of the filer's income during the six-month period prior to the filing. A chapter 11 debtor has a one-time absolute right to convert the chapter 11 proceeding to a proceeding under chapter 7 except if (1) the debtor is not a debtor in possession, (2) the proceeding originally was started as an involuntary proceeding under chapter 11, or (3) the case was converted to a proceeding under chapter 11 other than at the debtor's request. A debtor in a chapter 11 case does not have an absolute right to have the case dismissed upon request. There are important exceptions to the conversion process in a chapter 11 proceeding. Except when the debtor requests the conversion, section 1112(c) of the Federal Bankruptcy Code does not permit the court to convert a proceeding involving a farmer or charitable institution to a liquidation proceeding under chapter 7.
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